Managed services provider Redcentric has reported annual earnings ahead of market expectations and unveiled a significantly strengthened balance sheet following the disposal of its data centre business.<\/p>\n
In a trading update for the year ended 31 March 2026, the AIM-listed company said adjusted EBITDA from its managed services business reached approximately \u00a317.5m, ahead of market expectations of \u00a317.2m.<\/p>\n
Revenue from the managed services operation was \u00a3132.1m, compared with \u00a3135.1m in the previous year, while recurring revenues remained high at around 88%, providing strong earnings visibility.<\/p>\n
The company said its second-half performance benefited from continued cost discipline and strategic investments aimed at accelerating revenue growth and improving earnings from the second half of FY27 onwards.<\/p>\n
Group adjusted net debt reduced to around \u00a336.8m at the year end, down from \u00a341.9m a year earlier, reflecting strong cash generation.<\/p>\n
Redcentric’s financial position was further transformed after the completion of the sale of its data centre business to Stellanor Datacenters Group in April.<\/p>\n
Following receipt of the initial \u00a3115.4m cash consideration, the group moved into a net cash position of \u00a377.9m at the end of May excluding IFRS lease liabilities.<\/p>\n
The company said the disposal leaves it focused on its core managed services business, where it continues to target long-term, higher-margin contracts while maintaining tight control over costs.<\/p>\n
Michelle Senecal de Fonseca, chief executive, said: \u201cI am pleased to report that we have delivered Adjusted EBITDA ahead of expectations. This reflects strong operational execution, disciplined cost management, and the successful delivery of our strategic priorities.<\/p>\n
\u201cWith a significantly strengthened balance sheet following the data centre disposal, we are well positioned to accelerate growth and deliver sustainable value for shareholders in FY27 and beyond.\u201d<\/p>\n
The company added that the recurring revenue characteristics of its managed services business, combined with lower capital expenditure requirements and improved cash conversion, give the board confidence in the medium- to long-term outlook.<\/p>\n
The figures reported exclude the performance of the data centre division, which continued to be treated as a discontinued operation under IFRS throughout FY26 ahead of its disposal.<\/p>\n
Redcentric also announced it has appointed Tim Sykes as chief financial officer and executive director with immediate effect.<\/p>\n
He succeeds Tony Ratcliffe, who remained with the business to support the successful sale of the data centre division for \u00a3122.85m.<\/p>\n
Sykes brings more than 30 years of financial and commercial experience, including CFO roles at several AIM-listed businesses. Most recently, he played a key role in delivering a successful take-private transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Harrogate-based MSP said adjusted EBITDA reached \u00a371.5m as the company benefited from continued cost discipline and strategic investments<\/p>\n","protected":false},"author":271992,"featured_media":2149176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262,120781,50204],"coauthors":[137100],"class_list":["post-2155122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-markets","category-technology","tag-featured-story","tag-yorkshire"],"yoast_head":"\n